Mayfair Gardens, a residential redevelopment site off Dunearn Road in Bukit Timah, is being launched for en bloc sale on Monday with a reserve price tag of S$265 million.
This amounts to a land price of about S$1,060 per square foot per plot ratio (psf ppr), including an additional lease top-up premium of S$43.7 million payable for a fresh 99-year lease. This works out to S$961 psf ppr with an inclusion of a 10 per cent bonus balcony gross floor area (GFA).
Mayfair Gardens has a site area of 19,368 sq m (208,475 sq ft) and a residential gross plot ratio of 1.4. This allows a maximum permissible GFA of about 291,800 sq ft. Currently, there are six residential walk-up blocks of 124 apartment units ranging from 100 sqm to 200 sq m.
Each owner will receive gross sales proceeds of S$1.45 million to S$2.46 million based on the asking reserve price. The tender for Mayfair Gardens will close on Nov 16.
The area is surrounded by Good Class Bungalows, landed homes and condominiums. It is also near a number of good schools and is well-connected to other parts of Singapore via major arterial roads and expressways. Public transport such as the opening of the Downtown line has made Bukit Timah Road extremely convenient.
Based on the asking reserve price, a breakeven price of around S$1,600 psf and a selling price of above $1,800 psf is expected.
2,700 existing homes are going to be taken out from the market and an expected 10,000 new homes are estimated to be built on these sites.
More potential collective sale sites are in the works in the prime district. Owners at freehold Shelford Green as asking for S$$140 million or S$1,505 psf ppr. Shelford Green is located nearer to Botanic Gardens. Currently, the site houses 33 apartments and has a land area of about 66,400 sq ft and a gross plot ratio of 1.4.
Even though the land cost for a collective sale is high, the projected quantum for Shelford Green is small, thus smaller developers could be interested. Due to the prime location, established developers with strong branding in developing high-end projects such as Wing Tai, UOL Group and Allgreen would also be interested.